29.346—Reduction for survivor benefits.
(a)
If a retiree designates a base for a
survivor annuity that is greater than or equal to
the unreduced Federal Benefit Payment, the
applicable plan's annuity reduction formula is
applied to the unreduced Federal Benefit Payment
to determine the reduced Federal Benefit Payment.
(See example 10 of appendix A of this
subpart.)
(b)
If a retiree designates a base for a
survivor annuity that is less than the amount of
the Federal Benefit Payment, the entire survivor
reduction applies to the Federal Benefit Payment
to determine the reduced Federal Benefit
Payment.